5 Tips for Living within Your Means

There are many benefits to living within your means. The primary one is that you avoid debt and the headaches that are associated with owing money to a company or someone else. Following these 5 tips will help you save money so that you can live within your means:

1. Don’t Eat Out as Much

It can’t be stressed enough how much eating out on a regular basis will destroy your attempts at living a frugal lifestyle. The more you cook your own meals at home, the more money you’ll save. A prepared meal from your grocery store (frozen or canned) is still a lot cheaper than paying to eat prepared meals at restaurants, including the tip. If you want to save even more money and promote good health, cook your own foods from scratch using the millions of free recipes available online.

2. Eliminate Cable or Satellite TV

There are so many options available to get your news and entertainment, that paying high fees for cable or satellite may not make much sense anymore. When you take into account the connection fees, the monthly fees and taxes, you’re most likely paying too much money in this category. Why do you pay for cable? Have you bought into the “bundled services” trap, where your internet or phone is slightly cheaper if you pay for all of the services at once? Find other ways to achieve your goals for telephone and internet use at a far cheaper rate, such as using Netzero and prepaid cell phones. You can also watch videos on news websites, listen to talk radio, watch YouTube or buy used DVDs to fill your news and entertainment needs.

3. Downsize to a New Apartment

Perhaps you’re paying too much rent right now. If you’re serious about living within your means, you may consider moving to a cheaper apartment when your lease is up (or if there’s an opportunity to legally and responsibly leave earlier). If you’re worried that the only workable and cheaper apartment is a small one, then learn how to manage your space better. Get more creative about using closet space, such as using it for a work center or an at-home office.

4. Avoid Bank Fees

Online banking makes it easy to avoid charges for overdrawn checks or other fees that crop up due to poor bookkeeping habits. You can log on and check your account often, and transfer money between accounts. If you’re not using online banking, consider doing so. You’ll be able to create your own password and log in from anywhere. Another way to avoid bank fees is to use free checking accounts only. If your bank is not offering you a free checking account, then move your money someplace else.

5. Consolidate Errands

You monthly auto fuel bill can also make living within your means very difficult. One way to curb your travel expenses is to consolidate your errands. Every little mile counts when you’re pinching pennies. You have to figure out a way to take care of all of your errands in one or two trips per week, rather than running out every time you remember to do something. Think about what you need to get done on a weekly, bi-weekly and monthly basis, and then schedule your errands in a way that reduces your car trips dramatically.

When you start to follow these tips, you’ll begin to see that living within your means is achievable. You might even catch the frugal lifestyle bug and start to have fun saving money.